Muthoot Fincorp NCD September 2019
Muthoot Fincorp Ltd is a non-banking financial company. The company offers personal and business loans. These loans are secured by gold ornaments and jewelry. It has announced its NCD issue worth of Rs 500 crore. Muthoot Fincorp Limited NCD is scheduled for subscription on 27th Sep 2019. It will close on 18th Oct 2019.
Investors who have the interest to invest in the Muthoot Fincorp NCD scheme will check other details of the NCD issue. It offers interest rates up to 10 percent and yield works up to 11.03%.
Basic Details of Muthoot Fincorp Limited NCD
|Issue Open||Sep 27, 2019, to Oct 18, 2019|
|Name||Muthoot Fincorp Limited|
|Security Type||Secured, Redeemable, Secured NCDs|
|Base Issue Size||Rs 250 crore|
|Shelf Issue Size||Rs 250 crore|
|Issue Price||Rs 1000 per NCD|
|Minimum Lot size||10 NCD bonds|
|Market lot||1 NCD|
|Credit Rating||BWR A+ / stable by Brickworks|
|Tenor||400 days / 24 months/ 36 months|
The issue is available in eight series that come with a fixed period of 400 days, 2 years, and 3yr. It offers Rs 250 crores with an option of retaining over a subscription of Rs 250 crores. The Face value of the NCD bond is Rs 1000.
Investors need to invest a minimum of 10 bonds. Means invest for a minimum of Rs 10,000 in multiples of 1 bond. Interest payables available monthly, yearly, and cumulative. Individual coupon rates ranged between 9.00% to 10.00% and effective yield between 9.30% to 11.03%.
All categories of investors are eligible to apply for this secured NCD except for NRIs. They cannot apply to this NCD.
This secured NCD will manage by SMC Capital. Muthoot NCD has proposed to be listed on BSE. The NCDs are liquid investments.
Objectives of the Issue
According to the draft prospectus, the funds raised via NCD will utilize towards working capital. The company stated that at least 75 percent of net proceeds utilized for working capital and repayment of interest and principal of existing loans. The remaining 25 percent for general corporate purposes.
The proposed NCDs have been rated as “BWR A+” by Brickwork Ratings India Private Limited. This rating indicates that instruments with this rating are considered to have a full degree of safety regarding timely servicing of financial obligations and carry the lowest credit risk.
Coupon Rates of Muthoot Fincorp Limited NCD
|Options/ Series||Category||Tenure||Interest Payments||Coupon Rate (Interest) Individuals||Effective Yield||Maturity Value|
|Qualified Institutional Buyers (QIB)||250,000 (10%)|
|Non-Institutional Investors (NII)||1,000,000 (40%)|
|High Networth Investors (HNI)||1,250,000 (50%)|
|Retail Investors (RII)||0|
Muthoot Fincorp offers secured NCDs that provide high interest rates up to 10 percent. In the last few years, company has earned consistently and increased its margins. It state that the company can pay the interest rates for its NCD holders.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully and consult your investment adviser before investing.